Market Vectors Emerging Markets Local Currency Bond ETF (NYSE Arca: EMLC) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of J.P. Morgan Government Bond Index-Emerging Markets Global Core Index (ticker: GBIEMCOR), according to a press release. The fund has a gross expense ratio of 0.60% and net expense ratio of 0.49%.
GBIEMCOR currently has 171 constituents with maturities ranging from one to 30 years, and an average yield-to-maturity of 6.8% as of July 1, 2010. The Index currently tracks a selection of bonds issued in local currencies by thirteen emerging market countries representing Latin America, Eastern Europe, Africa, and Asia: Brazil, Colombia, Egypt, Hungary, Indonesia, Malaysia, Mexico, Peru, Poland, Russia, South Africa, Thailand, and Turkey.
GBIEMCOR is market-cap weighted, with individual country exposures capped at 10% to provide more diversification among countries within the index. As of July 1, 2010 six countries met the 10% threshold, including Brazil, Malaysia, Mexico, Poland, South Africa and Thailand. Index rebalancing occurs monthly.More information is at http://www.vaneck.com.
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